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The document outlines various aspects of operations management, including hospital operation management, competitive dimensions, historical developments, and production systems. It discusses operation design, product design approaches, location decision factors, and layout types, along with aggregate planning costs and elements of successful TQM. Additionally, it provides productivity calculations and a case study on reducing handling in supply management.

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8 views

ab meba

The document outlines various aspects of operations management, including hospital operation management, competitive dimensions, historical developments, and production systems. It discusses operation design, product design approaches, location decision factors, and layout types, along with aggregate planning costs and elements of successful TQM. Additionally, it provides productivity calculations and a case study on reducing handling in supply management.

Uploaded by

henoksisayhenok8
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Hospital Operation Management System

• Inputs: Patients, medical team, gear, supplies, money.

• Process: Registering patients → diagnosing → treating → recovery, scheduling resources, managing


inventory.

• Output: Treated patients, billing, patient satisfaction scores.

2. Competitive Dimensions of Operations Strategy

Key priorities:

• Cost – Competing on low prices (like Walmart).

• Quality – Reliable performance (like Mercedes).

• Delivery – Quick shipping (like Amazon).

• Flexibility – Custom options and volume changes (like Dell).

• Innovation – New products (like Apple).

3. Historical Development of Operations Management

• Before the Industrial Revolution: Crafts made by skilled workers.

• Industrial Revolution (1760–1840): Mass production and dividing tasks (Eli Whitney).

• Scientific Management (1900s): Studies on efficiency (Frederick Taylor).

• Human Relations Movement (1930s): How worker motivation affects productivity (Elton Mayo).

• Operations Research (WWII): Using math techniques like linear programming.

• Modern OM (1980s–now): Lean manufacturing, TQM, Six Sigma, digital tools (IoT, AI).

4. Advantages & Disadvantages of Production Systems

Job Shop:

• Pros: Highly customizable, flexible.

• Cons: Expensive, slow, complicated scheduling.

Batch Production:
• Pros: Moderately flexible, cheaper than job shops.

• Cons: Inventory costs, setup delays.

Continuous Production:

• Pros: Very efficient, low cost per unit.

• Cons: Inflexible, needs a lot of investment.

5. Operation Design

Looks at making processes efficient for delivering products/services, including how things flow, planning
capacity, and using technology.

6.1 Modular Design:

• Pros: Easy to fix, customizable (think LEGO).

• Cons: Higher initial design costs.

6.2 Design for Disassembly (DfD):

• Designed for easy recycling (like IKEA furniture).

6.3 Robust Design:

• Works well under different conditions (Taguchi methods).

6. Mass Customization

• What it is: Making custom products at mass-production prices (like Nike ID).

• Achieved through: Modular design, flexible manufacturing, and a strategy to delay final assembly.

7. Product Design Approaches

Traditional Approach: Steps in order (design → engineering → production); slow.

Concurrent Engineering: Teamwork happens at the same time (design and production work together).

Quality Function Deployment (QFD): Converting customer needs into design specs (House of Quality).

8. Location Decision Factors

• Cost: Labor, taxes, utilities.


• Market Proximity: Access for customers.

• Infrastructure: Transport and utilities.

• Regulations: Environmental rules.

• Competition: Companies often gather in the same area (like tech firms in Silicon Valley).

9. Types of Layouts

1. Process Layout – Job shops/hospitals (group similar tasks).

2. Product Layout – Assembly lines (straight flow).

3. Fixed-Position Layout – Shipbuilding (product stays in one place, workers move).

4. Cellular Layout – Group similar processes (like production cells).

10. Aggregate Planning Costs

• Production Costs: Overtime, subcontracting.

• Inventory Costs: Holding items, stockouts.

• Workforce Costs: Hiring/firing, training.

11. Elements of Successful TQM

1. Leadership Commitment – Leadership drives a quality culture.

2. Customer Focus – Listen to customer needs (like surveys).

3. Continuous Improvement (Kaizen) – Always looking for small upgrades.

4. Employee Involvement – Let staff suggest improvements.

5. Process-Centric Approach – Standardize workflows (SOPs).

6. Data-Driven Decisions – Use Six Sigma/statistical tools.

12. Productivity Calculations

Given:

• Output = $400,000

• Raw materials = 8,000 units

• Labor = 2,000 hrs ($4/hr)


• Machine = 4,000 hrs ($2/hr)

• Raw material cost = 40/labor hr → Total RM cost = 2,000 × 40 = $80,000

A) Single-Factor Productivity (Raw Material):

= Output / RM Cost = 400,000 / 80,000 = 5

B) Multifactor Productivity (Labor + Machine):

= 400,000 / (400,000 / (8,000 + 80,000)) = 25

C) Total Productivity:

= 400,000 / (80,000 + 8,000 + 8,000 + 8,000) = 4.17

13. Case Study: Hawkins Supply

Ways to Reduce Handling:

1. FIFO System: Make sure the oldest stock gets used first to cut down on restacking.

2. Automated Storage: Use barcode scanners to keep track of expiration dates.

3. Warehouse Redesign: Use rolling shelves for easy access to perishables.

4. Vendor-Managed Inventory (VMI): Let suppliers watch stock expiration.

Alternatives:

• Color-coded labels for expiration dates.

• Train staff on proper inventory rotation.

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